Budgets

Financial budgets are all about financial planning and forecasting. It includes:

• Revenue Projection: Estimating income based on anticipated client work, billing rates, and staff utilization rates.

• Expense Planning: Forecasting costs such as salaries, benefits, rent, software, marketing, travel, and other overheads.

• Profitability Goals: Setting targets for overall company profit margins and profitability by service line, client, or practice area.

• Cash Flow Management: Predicting cash inflows and outflows to ensure the company has sufficient liquidity to operate.

Budgets are used in the following charts and reports:

• Revenue forecasting chart

• Margin forecasting report

• Financial KPIs charts

• Financial KPIs report

You can create and manage budgets in VOGSY’s back office. Each budget needs the following details:

• Ledger account

• Accounting year

• Department

• Budget amount

Once created, you can spread the budget amount across the months of the year.